BILL NUMBER: AB 2212	CHAPTERED  09/23/00

	CHAPTER   577
	FILED WITH SECRETARY OF STATE   SEPTEMBER 23, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 22, 2000
	PASSED THE SENATE   AUGUST 28, 2000
	PASSED THE ASSEMBLY   MAY 18, 2000
	AMENDED IN ASSEMBLY   APRIL 6, 2000

INTRODUCED BY   Assembly Member Frusetta

                        FEBRUARY 24, 2000

   An act to add Chapter 8.5 (commencing with Section 1350) to
Division 6 of the Military and Veterans Code, and to add and repeal
Article 1 (commencing with Section 18701) of Chapter 3 of Part 10.2
of Division 2 of the Revenue and Taxation Code, relating to veterans.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2212, Frusetta.  Veterans:  National World War II Veterans
Memorial.
   Existing law relating to the administration of personal income
taxes allows individual taxpayers to contribute amounts in excess of
their tax liability to various funds and accounts established for
special purposes.
   This bill would allow individual taxpayers to contribute amounts
in excess of their tax liability to a National World War II Veterans
Memorial.  However, the bill would provide that a voluntary
contribution designation for this purpose cannot be added on the tax
return until another voluntary contribution designation is removed.
This bill would provide that all contributed amounts, net of
administrative costs, be deposited in the National World War II
Veterans Memorial Trust Fund, which would be established by this
bill.  This bill would specify that all moneys in that fund are, upon
appropriation by the Legislature, allocated to the American Battle
Monuments Commission for the construction of a National World War II
Veterans Memorial as described by a certain provision of law.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Chapter 8.5 (commencing with Section 1350) is added to
Division 6 of the Military and Veterans Code, to read:

      CHAPTER 8.5.  NATIONAL WORLD WAR II VETERANS MEMORIAL TRUST
FUND

   1350.  There is hereby established the National World War II
Veterans Memorial Trust Fund to receive those moneys transferred in
accordance with Section 18702 of the Revenue and Taxation Code.  Upon
appropriation by the Legislature, the moneys in the trust fund shall
be allocated to the American Battle Monuments Commission for the
construction and maintenance of the World War II Memorial described
in Section 1 of Chapter 864 of the Statutes of 1999.
  SEC. 2.  Article 1 (commencing with Section 18701) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:

      Article 1.  National World War II Veterans Memorial Funding

   18701.  (a) Any individual may designate on the tax return that a
contribution in excess of tax liability, if any, be made to the
National World War II Veterans Memorial Trust Fund, established
pursuant to Section 1350 of the Military and Veterans Code.
   (b) A contribution shall be in a full dollar amount and may be
made individually by each signatory on a joint return.
   (c) A designation made under subdivision (a) shall be made for any
taxable year on the initial return for that taxable year, and once
made shall be irrevocable.  In the event that payments and credits
reported on the return, together with any other credits associated
with the taxpayer's account do not exceed the tax liability, if any,
shown thereupon, the return shall be treated as though no designation
had been made.  In the event that no designee is specified, the
contribution shall, after reimbursement of the direct actual costs of
the Franchise Tax Board for the collection and administration of
funds under the article, be transferred to the General Fund.
   (d) If an individual designates a contribution to more than one
account, and the amount available is insufficient to satisfy the
total amount designated, the contribution shall be allocated among
the designated accounts on a pro rata basis.
   (e) The Franchise Tax Board shall revise the form of the return to
include a space labeled the "National World War II Veterans Memorial"
to allow for the designation permitted under subdivision (a).  The
Franchise Tax Board shall state in the accompanying tax information
booklet that the contributions will be for use on the World War II
Memorial in Washington, D.C.
   (f) Notwithstanding any other provision, a voluntary contribution
designation for the National World War II Veterans Memorial Trust
Fund shall not be added on the tax return until another voluntary
contribution designation is removed.
   (g) A deduction shall be allowed under Article 6 (commencing with
Section 17201) of Chapter 3 of Part 10 for the amount of any
contribution made under subdivision (a).
   18702.  (a) The Franchise Tax Board shall annually determine the
total amount designated pursuant to subdivision (a) of Section 18701
and notify the Controller of that amount.
   (b) The Controller shall transfer the amount determined under
subdivision (a), less the direct, actual costs of the Franchise Tax
Board for the collection and administration of funds under this
article, to the National World War II Veterans Memorial Trust Fund,
established pursuant to Section 1350 of the Military and Veterans
Code, for use on the World War II Memorial in Washington, D.C.  Upon
appropriation by the Legislature, the Controller shall transfer the
amount of reimbursement for direct actual costs incurred by the
Franchise Tax Board and the Office of the Controller in the
administration of this fund.
   18703.  This article creates an additional source of funding for a
specified purpose.  The funds generated by this article shall not be
used in place of funds from other sources that are available for
appropriation to the National World War II Veterans Memorial Trust
Fund.
   18704.  (a) This article shall remain in effect only until January
1 of the third taxable year following the first appearance of the
National World War II Veterans Memorial Trust Fund on the tax return
and as of that date is repealed, unless a later enacted statute, that
is enacted before the applicable date, deletes or extends that date.

   (b) If, in any calendar year after the first taxable year the
National World War II Veterans Memorial Trust Fund appears on the tax
return, the Franchise Tax Board estimates by September 1 that
contributions described in this article made on returns filed in that
calendar year will be less than two hundred fifty thousand dollars
($250,000), or the adjusted amount specified in subdivision (c) for
subsequent taxable years, as may be applicable, then this article is
repealed with respect to taxable years beginning on or after January
1 of that calendar year.  The Franchise Tax Board shall estimate the
annual contribution amount by September 1 of each year using the
actual amounts known to be contributed and an estimate of the
remaining year's contribution.
   (c) For each calendar year, beginning with the second calendar
year the National World War II Veterans Memorial Trust Fund appears
on the tax return, the Franchise Tax Board shall adjust, on or before
September 1 of that calendar year, the minimum estimated
contribution amount specified in subdivision (b) as follows:
   (1) The minimum estimated contribution amount for the calendar
year shall be an amount equal to the product of the minimum estimated
contribution amount for the prior September 1 multiplied by the
inflation factor adjustment as specified in paragraph (2) of
subdivision (h) of Section 17041, rounded off to the nearest dollar.

   (2) The inflation factor adjustment used for the calendar year
shall be based on the figures for the percentage change in the
California Consumer Price Index received on or before August 1 of the
calendar year pursuant to paragraph (1) of subdivision (h) of
Section 17041.
   (d) Notwithstanding the repeal of this article, any contribution
amounts designated pursuant to this article prior to its repeal shall
continue to be transferred and disbursed in accordance with this
article as in effect immediately prior to that repeal.
